To The Moon

Real estate investment trusts (S-Reits) with retail assets in Singapore continued to post strong committed occupancy and positive rental reversions in their latest reporting period ended December.

The robust operating performance comes on the back of tourism recovery as well as proactive asset management by the retail landlords. Market expectations are for committed occupancy in the retail segment to remain high, with continued rental growth in 2025.

1. $Frasers Cpt Tr(J69U.SI)$

Frasers Centrepoint Trust – one of the largest suburban retail mall owners in Singapore –continued to report high portfolio committed occupancy of above 99% in its 1Q business update. Shopper traffic and tenant sales also grew by 2.7% and 2.5% respectively in the first quarter, compared to the year-ago period.

2. $CapLand IntCom T(C38U.SI)$

CapitaLand Integrated Commercial Trust, which operates both suburban and downtown retail malls, saw portfolio committed occupancy rise to 99.3% as of Dec 2024, up from 99% three months earlier. 

Its retail portfolio also saw positive rental reversion of 8.8% in FY24, led by suburban malls. Downtown malls outperformed in terms of shopper traffic growth driven by tourist arrivals and increased openings of new concepts by tenants. 

3. $Mapletree PanAsia Com Tr(N2IU.SI)$

Mapletree Pan Asia Commercial Trust said in its Q3 results that VivoCity maintained a strong performance – despite an ongoing asset enhancement initiative – cushioning overseas headwinds. The mall’s committed occupancy improved to 99.9% as of end December, with a 16.9% positive rental reversion in its financial year-to-date.

4. $Suntec Reit(T82U.SI)$

Suntec Reit’s retail portfolio performance improved during the second half, with higher gross revenue due to higher rent at Suntec City Mall. Committed occupancy at Suntec City Mall rose to 98.4% from 95.6% in FY23, while rent reversion for the full year was a positive 23.2%, with shopper traffic also up 6.2% year on year.

5. $Lendlease Reit(JYEU.SI)$

Lendlease Global Commercial Reit reported that its retail portfolio which includes Jem and 313@somerset achieved a 10.7% rental reversion in its 1H FY 2025 results. 

Committed occupancy stood at 99.9%, although tenant sales saw a slight decline due to increase in outbound travel on the back of the strong Singapore dollar. The manager noted that the retail leasing market in Singapore continued to see healthy demand, with F&B operators, fashion and sports brands actively expanding their footprint.

Other REITs with malls along Orchard Road also delivered a positive showing.

6. $StarhillGbl Reit(P40U.SI)$

Starghill Global REIT achieved full committed occupancy for its Singapore retail properties in Wisma Atria and Ngee Ann City. Revenue and net property income for both assets rose year-on-year in the first half ended December.

7. $OUEREIT(TS0U.SI)$

OUE Reit also reported higher committed occupancy of 98.2% at Mandarin Gallery as of December 2024, with positive rental reversion of 19.8% in FY2024. The manager noted that the improved operating metrics was underpinned by continued tourism recovery.

CBRE said in its 2025 Singapore Real Estate Market Outlook report that leasing sentiment in Singapore remains strong as the city’s reputation as a global tourist and business hub continues to draw significant interest from retailers.

It expects overall average retail prime rents to grow by 2% to 3% in 2025, recovering to pre-pandemic levels, driven by tourism recovery and below historical average new retail supply.

Meanwhile, DBS Group Research noted last week that S-Reits have been generally reporting stronger-than-expected performance across all subsectors at the start of the current earnings season, with better-than-expected rent reversions.  The retail sub-sector remains the preferred pick for the research house.

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